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Workshop on The Impact of Transportation Networks on Trade and Tourism7-8 June 2011, Izmir, Republic of Turkey
Trade Facilitation in Asia and the Pacific: ESCAP Perspective
by Yann Duval,Yann Duval,
Trade and Investment Division, Trade Facilitation Section
United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)for Asia and the Pacific (ESCAP)
ESCAP has15ESCAP has15 Members in common
with the Islamicwith the Islamic Development Bank
http://www.unescap.org/ttdw/common/TIS/AH/maps/ah_map_latest.jpg, downloaded 3 june 2011
Overview
Trade Facilitation?Trade Facilitation?Trade Facilitation in Asia and the Pacific
Status/PerformanceStatus/PerformanceESCAP’s Work on Trade Facilitation
ADB ESCAP ll b iADB-ESCAP collaborationUNNExT
Lessons learned and recommendations
Trade Facilitation (TF)?
“the simplification and harmonization of international trade procedures ”trade procedures.“Measures that aims to increase the cost-effectiveness of international trade transactions”effectiveness of international trade transactions .
TF covers the entire trade transaction
How many documents and parties involved in How many documents and parties involved in exporting Rice from Thailand? exporting Rice from Thailand?
1 Purchase Order 12. Booking Request Form
About About 2424 documentsdocuments (~700 data elements) and (~700 data elements) and 1515 partiesparties
1. Purchase Order2. Proforma Invoice3. Commercial Invoice4 Letter of Credit
12. Booking Request Form – Border Crossing
13. Booking Confirmation – Border Crossing
4. Letter of Credit5. Packing List6. Application for the Rice Export
Permit (A 3)
14. Container Loading List15. Outward Container List16. TKT 308.2Permit (A. 3)
7. Rice Export Permit (A. 4)8. Application for Certificate of
Standards of Product
17. Equipment Interchange Report (EIR)
18. Export DeclarationStandards of Product (MS. 13/1)
9. Certificate of Product 10.Certificate of Standards of
19. Manifest20. Shipping Particular21. Bill of Lading10.Certificate of Standards of
Products (MS. 24)11.Application for Phyto-sanitary
Certificate (PQ. 9)
22. Health Certificate23. Certificate of Origin24. Phyto-sanitary Certificate
7
y y
*Data collected by Institute for IT Innovation, Kasetsart University (2007)
Time-Procedure ChartExport of Frozen Shrimp from Thailand*
Time (Days) Cost of documentation handling activities ranges from 2 500 to 4 000 Baht
30
35
4
ranges from 2,500 to 4,000 Baht.
253
111
1. Conclude sales contract and trade terms2. Have product sampled and technically examined 3. Arrange transport4 P epa e e po t pe mit
20
1514
31
1
4. Prepare export permit 5. Apply for cargo insurance6. Prepare and submit customs declaration 7. Stuff container and transfer it to port of departure8 Clear goods through customs
10
8. Clear goods through customs 9. Handle container at terminal and stow it on vessel10. Prepare documents required by importer as listed in L/C11. Claim payment of goods
Procedures0
5
2
1 2 3 4 5 6 7 8 9 10 11 Procedures0
*Keretho, Innova, Kasetsart University (2008)
Overview
Trade Facilitation?Trade Facilitation?Trade Facilitation in Asia and the Pacific
Status/PerformanceStatus/PerformanceESCAP’s Work on Trade Facilitation
ADB ESCAP ll b iADB-ESCAP collaborationUNNExT
Lessons learned and recommendations
Trade Facilitation (TF) in Asia and the Pacific
On average ESCAP-wide, it still takes 30 days to move goods from factory to deck of ship at nearestmove goods from factory to deck of ship at nearest seaport
ASEAN till t k b t 15 dASEAN still takes about 15 daysG-7 export time is now at 10 days
Significant progress made in reducing time of import/export since 2006,
but G-7 countries also improved during that periodImprovements in TF could bring $250 billion in p gadditional intraregional trade
Bilateral comprehensive trade cost with Japan(ad valorem tariff equivalent), %
Source: ESCAP Trade Cost Database
Intra & Inter subregional Trade Costs in Asia(excluding tariff; 2007 in tariff equivalent; changes since 2003 in parenthesis)
East and North North and
EUASEAN-4 North-East Asia
Central Asia
SAARC-4 Aus-NZ EU-5 NAFTA
49%ASEAN-4 49%(-1%)
East and North-East Asia
132% 105%
Intra-Asia trade cost HIGHER than trade cost of AsiaEast Asia (na) (na)
North and Central Asia
259%(10%)
193%(-5%)
148%(12%)
trade cost of Asia with non-Asian
partners
SAARC-4 117%(-4%)
201%(na)
258%(-6%)
113%(-5%)
Aus NZ 85% 143% 313% 145% 61%Aus-NZ (-2%) (na) (-4%) (0%) (3%)
EU-5 105%(2%)
127%(na)
161%(-3%)
124%(-2%)
122%(0%)
59%(-3%)
NAFTA 101%(3%)
109%(na)
244%(10%)
137%(-7%)
122%(6%)
104%(1%)
50%(15%)
What explains changes in the trade costs across countries?*
0-10%Tariff costs10%10% Business environment
Availability/use of ICT services
Liner Shipping Connectivity (port25%
1%60-90%Policy-relatedNon Tariff
Liner Shipping Connectivity (port and maritime services efficiency)
Direct cost of trade procedures
50+ %
60 90%Non-Tarifftrade costs
p
Other factors, including:-Indirect cost of trade procedures-Currency / exchange rate-Non-tariff Measures (SPS, TBT)
10-30%Natural trade costs(geographic and cultural distance between countries)
*simplified representation based on Duval and Uthoktham (2011)
Overview
Trade Facilitation?Trade Facilitation?Trade Facilitation in Asia and the Pacific
Status/PerformanceStatus/PerformanceESCAP’s Work on Trade Facilitation
ADB ESCAP ll b iADB-ESCAP collaborationUNNExT
Lessons learned and recommendations
Trade Facilitation Work at ESCAP (on-going)
Capacity BuildingUnited Nations Network of Experts on Paperless Trade for Asia p pand the Pacific (UNNExT)Joint UNITAR-ESCAP Course on Trade Finance Infrastructure DevelopmentAnnual Asia-Pacific Trade Facilitation Forum
Research and AnalysisResearch and AnalysisEvaluation of trade costs and factors affecting themTrade Facilitation Needs and PrioritiesTrade Facilitation Provisions in RTAsTrade Facilitation Provisions in RTAsMapping of trade procedures (w/ ARTNeT)
Advisory Services
Close collaboration with UNECE ADB and the Global FacilitationClose collaboration with UNECE, ADB, and the Global Facilitation Partnership for Transport and Trade (see www.gfptt.org)
“ it f k l d d ti t f ilit t“community of knowledge and practice to facilitate the implementation of single window and paperless trade in the region ”
Tools and guides development activitiesAdvocacy and Technical Training WorkshopsKnowledge sharing and peer-to-peer supportg g p p pp
On-going focus:T d P A l iTrade Process AnalysisData HarmonizationLegal Framework for Single Window and Paperless Trade
2012-14: planned expansion of the regional community(Transit Facilitation / Agricultural Trade Facilitation)(Transit Facilitation / Agricultural Trade Facilitation)
16www.unescap.org/unnext/
UNNExT Activities (selected)UNNExT Activities (selected)
Tools & GuidesDevelopment
• Business Process Analysis (BPA) Guide (published Dec. 2009)• Data Harmonization Guide ( Mid 2011)• Legal Guide ( Mid 2011)
Capacity Building
• National Workshop on SW& BPA, Mongolia (Sep. - Dec.09)• Workshop on TF & BPA Training, Cambodia (Jun. – Jul. 2010)• National Workshop on SW, Nepal (Feb. 2011)
Knowledge Sharing
• UNNExT Brief Series• Online Working Groups & Databases• Asia Pacific Trade Facilitation Forum
RegionalAdvisory Service
• Mongolia Single Window Master Plan Peer Review (Oct. 2010)• Nepal: Towards Single Window Environment (2011)
Research & Analysis
• Regional Study on Improving Trade Procedures(Using BPA Guide)
• Cooperation with the ARTNeT
17
ADB-ESCAP Collaboration on Trade Facilitation
Capacity building for establishment of trade & transport facilitation committees in the GMS (2002-03)( )ADB-ESCAP reference book on “Designing and Implementing Trade Facilitation in Asia and the Pacific” (2007 2009)(2007-2009)Annual Asia-Pacific Trade Facilitation Forum & ExhibitionExhibitionRegional workshop on data harmonization (jointly with WCO and UNECE, 2010), )Support to single window implementation in CAREC countries [2009-11]
CAREC workshop on regional single windowNational workshop on business process analysis for trade facilitation (Azerbaijan)( j )National Single Window in Mongolia
Overview
Trade Facilitation?Trade Facilitation?Trade Facilitation in Asia and the Pacific
Status/PerformanceStatus/PerformanceESCAP’s Work on Trade Facilitation
ADB ESCAP ll b iADB-ESCAP collaborationUNNExT
Lessons learned and recommendations
Lessons learned & recommendations
Still lots of room for TTF related capacity buildingImport/export time costs and their predictability areImport/export time, costs and their predictability are affected by a wide range of factors
Document preparation takes most time, followed by transport/handling issuestransport/handling issuesThe quality of the (domestic) business environment & regulationsThe availability and quality of logistics services (i.e., the policies affecting development of this sector) in particular access toaffecting development of this sector), in particular access to maritime servicesProcedures between private parties are a big part of the overall trade process (Some procedures driven by industry associations p ( p y yto prevent entry by new/small players)
Bottlenecks may not be where we think they are…Bottlenecks may not be where we think they are…Strong trade process analysis and performance
monitoring need to be built in the TTF initiatives, always keeping the end result in mind (i e makingalways keeping the end-result in mind (i.e., making international trade more efficient)
Lessons learned & recommendations
Institutional mechanism for TTF important, but no “one size fits all”
Key to inter-agency cooperationStrengthen existing mechanism rather than develop new ones
C lt ti (i l t) f i t t d thConsultations (involvement) of private sector and other stakeholders is essential
To identify need and prioritiesTo identify need and prioritiesFor monitoring progressTo facilitate implementation
Best to address Transport & Trade Facilitation (TTF) in an integrated manner…
Corridor approach & national trade facilitation initiativesCorridor approach & national trade facilitation initiatives complementary (“soft” issues often not corridor specific)
prefer pragmatic step-by-step and flexible approach,rather than spend a lot of resources on negotiating a comprehensive TTF agreement which may then never be implemented
Other recommendations
/ fuse/build upon existing frameworks, tools, and standards
take the time to develop partnerships with existing playersDirectly encourage/support participation of
officials and project managers in regional and l b l TTF t k d tglobal TTF networks and events
tap into existing regional and international TTF k l d t k h ti it b ildiknowledge networks when supporting capacity building
(e.g., UNNExT, GFPTT…)
Moving Forward on Collaboration…
Asia-Pacific Trade Facilitation Forum, 4-5 Oct., SeoulIDB/ITFC participation in exhibition; IDB as a co-sponsor & organization of a joint side-event
IDB as a UNNExT cooperating organizationIDB as a UNNExT cooperating organizationJoint capacity building events; IDB-sponsored advisory group on specific TTF issues of interest
Pil t b i l i f t d & t tPilot business process analysis of trade & transport procedures in countries along specific IDB-supported corridors
1: Training based on UNNExT BPA for TF guide2: Conduct of BPA of trade procedures along the corridor for selected strategic products including time and cost of proceduresselected strategic products, including time and cost of procedures3: Organization of an IDB workshop to review and discuss the results and implications, and possible replications/extension of the method to other corridors or as a regular performance assessmentmethod to other corridors or as a regular performance assessment mechanism
Thank You for Your AttentionThank You for Your AttentionTrade and Investment Division website
http://www.unescap.org/tid/
UNNExT websiteUNNExT websitehttp://www.unescap.org/unnext/
Forthcoming Events:2nd Asia Pacific Trade and Investment Week 25 29 July 20112nd Asia-Pacific Trade and Investment Week, 25-29 July 2011,
Bangkok, Thailand
d3rd Asia-Pacific Trade Facilitation Forum & Exhibition, 4-5 October 2001, Seoul, Rep. of Korea
ANNEXANNEX
UNNExT Institutional StructureUNNExT Institutional Structure
UNNexT Members
WG 1
Core Expert Group
National Focal Points
WG-1
Advisory
WG-2
UNNExT Secretariat(ESCAP in cooperation with
UNNExT Partners (WCO ADB PAA )
Advisory Committee
(ESCAP, in cooperation with UNECE)
(WCO, ADB, PAA…)
2626www.unescap.org/unnext/
Trade Facilitation – Transport Facilitation
Transport facilitationMain focus is on the actual movement of goods (transportMain focus is on the actual movement of goods (transport documents, traffic rights)Focus often on specific routes & corridors
Trade facilitationFocus is on documentation, procedures, and information
ll ti d h i l d d i th ti t dcollection and exchange involved during the entire trade transaction
Traditionally between trader and regulators/controllersIncreasingly between all stakeholders (trader, logistics provider, regulators)Often starts well before the goods move (e.g., application for g ( g , pplicense or quality certificate)Can end after the goods have arrived at destination (payment procedures)procedures)
Focus often national (rather than corridor specific)
Trade Facilitation initiatives in Asia and the Pacific*
Central Asia RegionalE i C ti
Greater TumenInitiative
Asia-Pacific
Economic Cooperation Pan-BeibuGulf
Economic APTA Asia-PacificTrade Facilitation
Economic Cooperation
Greater MekongSAARC
CooperationOrganization
(ECO)
FrameworkAgreement
Subregion
ASEAN
(ECO)India-Mekong
ASEAN
*diagram is not comprehensive and to illustrate overlaps only
Trade Facilitation initiatives in Asia and the Pacific*
Many preferential and free trade agreements also cover trade facilitation
29**http://www.unescap.org/tid/aptiad/pillar.aspxhttp://www.unescap.org/tid/aptiad/pillar.aspx
Trade Agreements and Trade Facilitation in Trade Agreements and Trade Facilitation in Asia and the Pacific*Asia and the Pacific*
30 *Duval (*Duval (20112011), ESCAP TID Staff Working Paper, based on APTIAD), ESCAP TID Staff Working Paper, based on APTIAD